Oklahoma City-LSB Industries, Inc. and its subsidiary, Cherokee Nitrogen Co., entered into a settlement agreement and release on Sept. 24, 2007, with Dynegy Inc.; Dynegy’s subsidiary, Dynegy Marketing and Trade (DMT); and Nelson Brothers, LLC to settle a lawsuit – Nelson Brothers, LLC v. Cherokee Nitrogen v. Dynegy Marketing, pending in Alabama state court in Colbert County, Ala. (GM Nov. 11, 2004, p. 1). Dynegy filed a counterclaim against CNC for $580,000 allegedly owed on account, which has been recorded by CNC. The settlement will result in the dismissal with prejudice of all matters in the lawsuit and the payment to CNC of approximately $2.7 million, as well as allow CNC to retain the disputed $580,000 account payable. CNC had alleged Dynegy was responsible for fraudulently causing artificially high natural gas prices. There was no admission of guilt in the settlement, nor was there when Dynegy settled similar allegations with the Commodity Futures Trading Commission for $5 million in late 2002.
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GrowHow to close UK plant
Severnside, UK-GrowHow UK, the new joint venture between Terra Industries Inc. and Kemira GrowHow Oyj, announced Oct. 9 that it is planning on closing the Severnside fertilizer plant by the end of the year, with a loss of over 120 jobs. The jv is going to concentrate on more efficient assets. The Severnside plant, which came to the jv via Terra, included two ammonia plants, two nitric acid plants, and an ammonium nitrate plant.
CHS cashes in CF stake
St. Paul-Buy low and sell high – and that is exactly what CHS Inc. has opted to do with its shares of CF Industries Holdings Inc. CHS on Sept. 26 received cash of $108.3 million in connection with the sale of all of its remaining 1,610,396 shares of common stock in CF Industries Holdings Inc., and recorded a gain on the sale of $91.7 million. This would equate to an average per share price of $67.25. CF began trading a few years ago at $16.00. CHS said the cash received was used to pay down the company’s revolving line of credit.
Zoning vote sends Greensmiths looking again
Little Elm, Tex.-Greensmiths Inc. may have a tough time finding another location for its new golf course fertilizer blending, packaging, and distribution warehouse after being turned down by local planning and zoning officials. Greensmiths has wanted to move from its present location in adjacent Frisco, where it’s been operating in a very old building with some of its equipment outside in the weather. But Greensmiths had its eye on part of a 35-acre tract on the town’s outskirts that needed to be rezoned from single-family residential to light industrial. According to the local press, about 300 Little Elm and Frisco residents packed the town hall center for a public hearing on the proposed zoning change, expressing concerns for the safety of their children, increased traffic, and environmental problems. Part of the land borders the upscale Trails of Frisco neighborhood, and an elementary school is also close to the proposed site. The crowd cheered and applauded when the commission voted 5-0 against the change. Planning and Zoning Commission Chairman Rod Luther told the press that board members voted against the zoning change because they did not want the other uses that a light industrial designation permits. He said they weren’t rejecting the fertilizer facility. “It was a straight zoning request, not business specific, and I tried my hardest to divorce the two,” Little Elm Planning Director John Taylor told Green Markets. But he butted up against objections from residents – not so much in Little Elm, but from owners in Frisco, where homes run up to $1 million. The irony is that Frisco is one of the reasons Greensmiths needs to move, because the town bought the company’s property to turn it into a park. Greensmiths officials didn’t comment on the situation, but their real estate agent said he was looking for another location. The problem is, according to Taylor, there’s not much industrial-type property available. The commission’s recommendation must still go before the Little Elm City Council, but no one thinks the council will vote otherwise.
Fish kill incident traced to pressure test
Washington, Iowa-Golden Furrow Fertilizer Inc. was preparing a 12,000-gallon NH3 storage tank for pressure testing when a release of 2,700 gallons saturated with ammonia spilled into a nearby stream and killed thousands of fish, according to a report provided to the Iowa Dept. of Natural Resources. DNR is holding Golden Furrow responsible for the fish kill, which involved 7,681 fish and was reported Sept. 14. Golden Furrow officials told DNR they were not immediately aware of the fish kill and were not able to take preventive action. They theorized that the absence of rain allowed the water and nitrogen to move in concentrated amounts down a semi-dry creek. Subsequently, a six-inch layer of dirt was removed from the spill site and replaced with gravel, which deepened the drainage ditch on the property. The contaminated soil was removed to nearby farm fields. DNR Senior Environmental Specialist Terry Jones told Green Markets that Golden Furrow calculated the total release as 127.76 pounds of actual ammonia or 155 pounds of anhydrous. Jones explained, “The contents of the 12,000-gallon ammonia tank was being bubbled into 500-gallons of water in the 1,000-gallon water tank to keep vapors from venting to the atmosphere so that Golden Furrow could change some seals and then pressure-test the tank,” Jones reported. “During this bubbling process, the water became saturated with ammonia. When the 12,000-gallon tank was filled with water for the pressure test, the overflow drained to the 1,000-gallon water tank, which eventually overflowed onto the ground. The mixture flowed into the nearby creek, resulting in the fish kill.”
Mosaic makes proposal to end mining disputes
Port Charlotte, Fla.-In an effort to end the long and draining process of obtaining mining permits in Southwest Florida, the Mosaic Co. has negotiated a deal with representatives of three counties that would prevent them from making challenges to its permit applications for 30 years. However, the proposal has generated considerable controversy. The three counties, Sarasota, Lee, and Charlotte, have spent approximately $12 million during the past several years fighting phosphate mining permit applications in the Peace River watershed, which provides drinking water to much of the area. Recently, Mosaic sought to streamline negotiations with the counties by meeting with a representative from each, rather than in large groups. However, it also successfully sought to exclude the attorney who has represented Charlotte County, Ed de la Parte Jr., from the negotiations. Charlotte, which has spent the most during the battle, agreed to oust de la Parte, according to the Sarasota Herald-Tribune. The company agreed to protect large tracts of wetlands in the 100-year flood plains of the Peace and Myakka rivers, increase environmental protections, and protect the waters that flow into the Peace River. In addition, it agreed to build a large reservoir for drinking water. The deal must be approved by the commissioners of all three counties. Although Charlotte County has been the most active opponent of mining in the past, opposition appeared to be strongest in Lee and Sarasota counties. Charlotte will hold a public meeting on Oct. 23 to discuss the proposal, but no dates have been set in Lee and Sarasota counties. Mosaic did not respond to a request for a comment.
Settlement approved in deadly NH3 derailment
Bismarck, N.D.-A federal judge has given final approval to a $7 million class action lawsuit settlement in the Canadian Pacific Railway case involving a January 2002 derailment on the edge of Minot, N.D. The Jan. 18, 2002, derailment caused a release of anhydrous ammonia from a ruptured tank car that killed one Minot resident and sent hundreds to the hospital with eye irritation and breathing problems (GM Jan. 21, 2002). The settlement, approved by U.S. District Judge Dan Hovland, does not affect people who have filed individual lawsuits against Canadian Pacific, and can still be appealed if class action claimants decide to do so within a 30-day period. Under the terms of the settlement, the plaintiffs’ attorneys will get $2.9 million of the settlement to cover their fees and expenses. The rest will be shared equally by about 2,000 people, but the final number will not be known until the Nov. 8 deadline to submit claims. The three lead plaintiffs will each get $25,000, while the other claimants are expected to get about $2,000 apiece. Plaintiffs’ attorney Gordon Rudd Jr. said checks might be sent out as early as Thanksgiving. According to court documents, about 228 people opted out of the class action suit, which allowed them to join others who have filed individual lawsuits against Canadian Pacific. In July, a CP spokesman said the company had settled more than 1,000 individual lawsuits stemming from the derailment. The company said recently that more than 300 individual lawsuits remain.
Agriculture cuts loom in Michigan budget crisis
Lansing, Mich.-Michigan’s state budget crisis, which was temporarily averted by last-minute tax increases by the legislature earlier this month, could still result in deep cuts in the agriculture department, according to agribusiness interests. Lawmakers acted to head off a complete shutdown of government offices by adopting, among other measures, an extension of the state sales tax which, according to Michigan Agri-Business Assn. President Jim Byrum, won’t affect fertilizer or other farm inputs. Reported Byrum, “There was no talk of extending the sales tax to agriculture inputs at all. In fact, such an idea hasn’t surfaced around here in a long time.” But he wasn’t as confident about cutbacks in the state agriculture staff. “The challenge is that even with new taxes the budget is still $440 million short, and the legislature only passed a 30-day continuing budget to keep the state running while they figure out where to find the additional money. And that process is just getting started. We don’t know where and how much additional cutting we will see in the MDA.” Byrum had advised members earlier that policymakers were “sparring over dueling proposals” that would eliminate up to 25 workers in the agriculture department. At one point when the shutdown appeared to be imminent, association members were advised to “take steps to deal with gridlock if government services go down. Food will not be inspected, gas pumps will not be checked, fertilizer and pesticide facilities will not be inspected, there will be no enforcement of weights and measures, and no one is going to answer the phones.”
Penn. website set up for manure traders
Philadelphia-New Pennsylvania regulations prohibiting use of excess manure where it is produced have prompted introduction of the manuretrader.org website, which promotes online exchanges among many of the state’s 55,000 farms, according to conservation officials. “The Manure Trader website will give our farmers quick access to needed manure and will help facilitate the movement of manure throughout the state,” reported Karl Brown, State Conservation Commission executive director. Brown said the commission partnered with Pennsylvania Small Business Development Centers to adapt the centers’ Material Trade website, which assists users in exchanging other waste materials. He said the commission realized that with an excess of as much as 4.4 million tons and only 24 percent of the state’s eligible cropland currently using manure, there was a need to get the word out to other potential users. Manure Trader does just that by creating opportunities for traditional farmer-to-farmer exchanges for crop fertilization, as well as opportunities to encourage innovative manure uses as varied as soil reclamation, algae production, and even building materials. Manure listings may also serve to further alternative energy research such as manure-to-methanol, anaerobic digestion, and co-firing. Visitors to the site can browse available and wanted listings or log in to create a confidential listing. Manure Trader allows users to sort listings by type, price, quantity, and date listed. Registered users can sign up to be alerted when new listings in a desired category are posted. The site also includes broker and hauler directories.
Survey details farmer attitudes toward fertilizer
Ottawa-Most Canadian agricultural producers are confident in the regulatory system that ensures commercial fertilizers and supplements used in food production are safe and effective, according to a recently published survey. Three quarters of agricultural producers canvassed in a national survey conducted last spring by Ipsos Reid for the Canadian Fertilizer Products Forum (CFPF) said that the Canadian Food Inspection Agency was doing a good job in its regulation of fertilizer and supplement products. The survey of 400 agricultural producers on a wide variety of soil treatment issues found that the vast majority is satisfied with the physical quality of the available fertilizers and supplements, and 90 percent approve of the blended products provided by manufacturers. Close to 20 percent, however, have complained about or returned a product for being lumpy or dusty. Farmers said they pay close attention to the cost of fertilizers and supplements and base their purchases on perceived benefit and availability of various products. The survey also found that farmers are looking to incorporate more manure and compost ?Çô when it is available ?Çô on their land to reduce their nutrient requirements. About half the respondents cited price as the main reason for using fewer products. Among other findings of the survey, only 2 percent of those polled said they had not used any fertilizers or supplements in the last three years. It also found that producers make annual use of traditional products containing nitrogen, phosphorus, and potash, but are less familiar with newer products such as wetting agents and biosolids. “The Canadian Fertilizer Products Forum conducted this survey to get a better idea of farmers’ usage, familiarity and attitudes towards fertilizers and supplements,” said Craig Rickard, chair of the CFPF. “Farmer input is critical to making sure that regulatory decisions governing fertilizers and supplements reflect the needs of Canadian farmers.” The CFPF is a forum of industry, farm groups, and other stakeholders launched in 2006 to develop consensus-based recommendations to the Canadian government to improve fertilizer regulations.